The Advisor Weblog

Posted: 23 Jul 2010 05:01 AM PDT

Hi all, and welcome back. Besides Pound, majors are quiet today, as in an hour or so, we will finally know the euro zone stress tests results. Too much has been done and said about it that at this point seems hard to forecast what will happen; one thing I’m sure: reaction will be stronger if readings disappoint the market, as I do believe a positive data is mostly priced in.

Pound prelim q/q GDP almost double expectation, sending GBP/USD near past week high, around 1.5470. That’s the key level to watch in there, to the upside. Take a look at this report for more data:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-07-23.html

Regarding Euro, I will be watching 1.2860 / 1.2965 levels:pair holds a bullish tone, yet if under 1.2860, I see a retest of 1.2810 area today.

Here is the link for today's calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day!